Thursday, January 31, 2013
Swing Media: Positive news flow for grp, with grp announcing that it has clinched a deal to install solar-powered lighting for 300 PetroChina gas stations and signed a MOU to convert 200 more PetroChina gas stations. CEO note that this is just the tip of the Ice Berg, as PetroChina has 50,000 gas stations across China. And there are another 50,000 stations owned by other state-owned and private players. Co. had so far installed solar systems for 20 gas stations in China, and would start work on the rest this yr, which will keep grp very busy for a while. The profit per solar conversion project is about 100,000 yuan (S$19,860). For 300 projects, this translates into a potential profit of some $6m for Swing Media, which could double Swing Media's bottom line within the next two yrs. Add that the Chinese government has started getting very serious about energy conservation and pollution, and this emphasis has increased with the new government. In time, China expects to tap solar energy for much of its needs. DMG has a Buy Call on the counter with a 0.24c TP.